Statewide PA

Allegheny County | Energy Companies | Industrywide Issues | Olympus/Huntley & Huntley | Pennsylvania | Statewide PA | Taxation

Wolf’s Severance Tax Threat Costs Small PA Town $315,000
February 24, 2015February 24, 2015

Two weeks ago the hapless newly elected governor of Pennsylvania, Tom Wolf, introduced a new 7.5% severance tax plan to soak the Marcellus Shale industry in his state (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax). Wolf wants to target one industry, oil and gas, to give their hard-earned money away to another industry, teachers. He’s trying to pay back all of those good union voters in Philadelphia who elected him. But Wolf’s threat of a tax is already having very tangible consequences. Huntley & Huntley Energy Exploration has pulled out of a deal to lease 90 acres of land owned by Harmar Township (Allegheny County), PA. That just cost Harmar $315,000. Why did Huntley & Huntley pull out? The uncertainty over Wolf’s severance tax. If the tax passes, a great deal of drilling in PA’s Marcellus Shale will be idled–and that’s not idle speculation…
Read More “Wolf’s Severance Tax Threat Costs Small PA Town $315,000”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?
February 24, 2015February 24, 2015

Last week MDN gave you the heads up that new “acting” Sec. of the PA Dept. of Environmental Protection, John Quigley, is already signaling his desire to clamp down on the Marcellus industry. He mass-fired the members of the Oil and Gas Technical Advisory Board (OGTAB)–something no other governor and head of the DEP has done in living memory (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Scott Perry, deputy secretary of the DEP, says long-awaited new regulations formulated after the Act 13 law was passed in 2012 will not be delayed because of the mass firings on the OGTAB. Others, however, are not so sure. We still see tremors of a coming earthquake in which Wolf/Quigley screw around and miss the deadline (intentionally) and then rewrite the new regulations once again, to suit their own proclivities on drilling…
Read More “Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?”
Pennsylvania | Statewide PA

PA MCOR Director Goes on the Road — to Alergia
February 23, 2015February 23, 2015

We’ve never been to Algeria, but Thomas Murphy, the co-director of the Marcellus Center for Outreach and Research (MCOR), has. Last week Murphy attended an oil and gas conference in Algiers, Algeria to present on the “American experience” in extracting oil and gas from shale. We don’t have a transcript of his statements, but we do have international reaction. According to reports, Murphy admitted that “the shale industry will always pose some environmental risk” including “the contamination of aquifers, infiltration of natural gas in drinking water or failures related to landfill processes of chemical and radioactive waste are the main risks relating to the exploitation of unconventional gas.” We suspect the comments in context are a simple acknowledgement that you have to be careful and follow regulations to avoid problems. But international Arab media seems to be presenting his comments as some sort of grudging admission that shale drilling pollutes the environment, which of course is not the case (when it’s done properly)…
Read More “PA MCOR Director Goes on the Road — to Alergia”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Tries to Walk Back Ban Comment, PIOGA Doesn’t Buy It
February 20, 2015February 20, 2015

Is Pennsylvania Gov. Tom Wolf an extortionist? Or is he just dumb? Last week, in response to a reporter’s question about his proposed severance tax and what might happen if it doesn’t pass the legislature, Wolf said this: “You know, the alternative is not really no tax… the alternative is no drilling – a ban as in the case of New York” (see PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax). What the heck did he mean by that? And why are there NO mainstream media outlets covering it? Yesterday Wolf tried to walk back his comment without looking like a dolt. He didn’t succeed. The Pennsylvania Independent Oil and Gas Association (PIOGA) is fighting mad and says Wolf’s comment is tantamount to extortion (see their letter below). So which is it Gov. Wolf? Are you threatening the Marcellus industry in your state–pay the tax or die? Did you take one too many Xanax pills before the presser last week and you “misspoke”? What, precisely, did you mean by your comment?…
Read More “PA Gov Wolf Tries to Walk Back Ban Comment, PIOGA Doesn’t Buy It”
Air Quality | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Peer Reviewed Study: Marcellus Fugitive Methane is Minuscule
February 20, 2015February 20, 2015

A new study on methane emissions in the Marcellus by researchers at the University of Colorado’s Cooperative Institute for Research in Environmental Sciences and the National Oceanic and Atmospheric Administration (NOAA) has just been published in the peer reviewed Journal of Geophysical Research: Atmospheres. The study, titled “Quantifying atmospheric methane emissions from the Haynesville, Fayetteville, and northeastern Marcellus shale gas production regions” (full copy below), finds very little methane leakage in the Marcellus Shale region. This study is one more nail in the coffin of the wild theories of professors Robert Howarth and Tony Ingraffea (from the once-great Cornell University) about “fugitive methane” leaking out all over the place, heating up Mother Earth. In fact, this new research finds leakage from Marcellus operations is between 0.18% to 0.41%. That’s less than 2/10ths of a percent to about 4/10ths of a percent on average. It’s minuscule…
Read More “New Peer Reviewed Study: Marcellus Fugitive Methane is Minuscule”
Pennsylvania | Statewide PA

PA Production in 2H14 Soars to New Record; 4 Tcf in 2014
February 18, 2015February 18, 2015

The Pennsylvania Dept. of Environmental Protection (DEP) published its semi-annual (every 6 months) production report yesterday for Marcellus/Utica Shale gas production. The big news is that once again PA has shattered another record. In the second half of 2014 PA produced 2 trillion cubic feet (Tcf) of natural gas, making it ~4 Tcf for the entire year. That works out to be around 16% of all gas used throughout the United States–coming from a single state. Chesapeake Energy produced the most gas in 2H14 (with 712 producing wells), followed by Cabot Oil & Gas (340 producing wells). Below we have some more stats and facts about PA’s production for 2014…
Read More “PA Production in 2H14 Soars to New Record; 4 Tcf in 2014”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax
February 18, 2015February 18, 2015

Somehow in the flurry of news last week when Pennsylvania Gov. Tom Wolf released his so-called proposal to tax the Marcellus Shale industry (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax), we missed the fact that Wolf threatened the entire Marcellus Shale industry with a ban on drilling if the industry doesn’t fall into line and support his tax. Sure sounds like good old Philly-style break-their-kneecaps talk from the kinder, gentler and oh-so-much-smarter than everyone else Tom Wolf. His precise words: “…the alternative is not really no tax, the alternative is no drilling, a ban as in the case of New York.” Our collective jaws hit the ground. How can anyone not see this man for what he is? For what he’s trying to do (end drilling)? Like an old-style mob boss–you pay him or you get hurt–and hurt real bad. Fortunately, some groups like the Pennsylvania Independent Oil and Gas Association (PIOGA) isn’t taking Wolf’s threat lying down. They’re in the mood to fight…
Read More “PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Why did PA DEP Acting Sec Quigley Mass Fire Gas Advisory Board?
February 18, 2015March 26, 2015

Even though he’s still only “acting” Secretary of the Dept. of Environmental Protection (DEP), John Quigley is cleaning house at the DEP–installing his own yes-men and women in important positions–and doing it just prior to issuing important new drilling regulations. For some time politicians and old-line mom and pop conventional (non-shale) drillers have been making a fuss that the rules that apply to shale drillers should not apply to non-shale drillers. Fair enough. There are some major differences. But the timing for creating a new Conventional Oil and Gas Advisory Committee in addition to the Oil and Gas Technical Advisory Board (OGTAB)–and mass firing the members of the OGTAB (as Quigley has done) seems darned peculiar in light of the fact they have to publish new drilling regulations this year or what has been a 3-year process will need to be restarted all over again…
Read More “Why did PA DEP Acting Sec Quigley Mass Fire Gas Advisory Board?”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA DCNR Program Leases Under Rivers/Creeks for Marcellus Drilling
February 17, 2015February 17, 2015

Well now THIS is just not supposed to happen. The pure-as-the-wind-driven-snow PA Gov. Tom Wolf’s Dept. of Conservation and Natural Resources (DCNR) is stepping up its program of leasing underneath rivers, creeks and mud puddles for Marcellus and Utica Shale drilling–much to the consternation of anti-drilling groups like PennFuture (whose immediate past president, Cindy Dunn, is about to become Secretary of DCNR). When DCNR collected for river and stream leases under Republican Gov. Tom Corbett, the Democrat media machine reported it as a clandestine and secretive activity (see PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)). It actually has been quite public–MDN told you about this program all the way back in 2012 when it was launched (see PA DCNR Wants Money for Drilling Under Public Streams/Rivers). Our concern was/remains that the state of Pennsylvania may be claiming money for land that belongs to private landowners–denying private landowners of lease bonuses and royalties. Below we have the lease terms dictated by DCNR, a map of the (almost innumerable) waterways PA claims they own, a list of the names for those waterways, and the criteria DCNR uses in determining whether or not a waterway is owned by the state…
Read More “PA DCNR Program Leases Under Rivers/Creeks for Marcellus Drilling”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation

PA Dept of Revenue Still Takes Bite from Royalties, Just Smaller
February 17, 2015February 17, 2015

Last month we shared with Pennsylvania landowners who receive royalty checks the distressing news that the PA Dept. of Revenue is attempting to deny them deductions for certain production costs (see The Tax Man Returneth — for PA Landowners with Royalties). It appeared that the DOR was ramping up an aggressive campaign to drill landowners for money, sending out semi-threatening letters. Accountants told landowners to sit tight and see how this shakes out. Turns out that was good advice. DOR is now backing down on their previous aggressive claims. Oh they still want a pound or so of flesh–they still claim not all deductions are allowed that have been taken–but they are being more reasonable…
Read More “PA Dept of Revenue Still Takes Bite from Royalties, Just Smaller”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA | Wastewater

PA Dem Congressman “Steps Up” Frack Waste Witch Hunt
February 17, 2015February 17, 2015

Pennsylvania Congressman Matt Cartwright, an anti-drilling Democrat from northeast PA, began a bash-shale-drilling meme late last year (see PA Dem Congressman Demands Info from DEP on Frack Waste and PA Dem Congressman Cartwright Continues to Bash DEP). Cartwright wants to violate the U.S. Constitution and remove individual states rights to regulate oil and gas drilling and instead concentrate that power in Washington, D.C. where people like the arrogant Cartwright can control it via fiat. Cartwright is at it again. He’s “stepped up” his so-called investigation into shale waste disposal. The AP recently visited with Cartwright to take dictation…
Read More “PA Dem Congressman “Steps Up” Frack Waste Witch Hunt”
Pennsylvania | Statewide PA

Shale Gas News Radio – Feb 14, 2015 [Audio]
February 16, 2015February 16, 2015

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Feb 14…
Read More “Shale Gas News Radio – Feb 14, 2015 [Audio]”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax
February 12, 2015February 12, 2015

Newly elected Pennsylvania Gov. Tom Wolf has turned out to be another tax and spend liberal. Surprise! If you’re a regular MDN reader, you’re not surprised. We warned you about this from day one. Wolf released his severance tax plan yesterday, and it’s even worse than what he talked about on the campaign trail. He’s proposing a 5% severance tax PLUS another 4.7 cents per thousand cubic feet of natural gas that flows from a well. PA’s House Majority Leader Dave Reed (Republican) says it works out to be roughly a 7.5% tax–one of the HIGHEST IN THE NATION. On top of low low gas prices and rigs beginning to idle and capital budgets slashed 30-50%. In other words, if this tax is passed, not only will it not bring in Wolf’s disingenuous promise of $1 billion “for the children” (i.e. teachers unions), it will KILL Marcellus drilling in the state–and that’s not a bluff. It’s now apparent that Wolf is a man completely out of his depth and not ready for a big job like governor…
Read More “PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Towns to Gov Wolf: Don’t Kill the Impact Fee with Your New Tax
February 12, 2015February 12, 2015

Yesterday Pennsylvania Gov. Tom Wolf (Democrat) proposed what amounts to a 7.5% severance tax on Marcellus and Utica Shale drilling in the state (see our lead story today). Wolf’s severance tax is being erroneously reported as a 5% severance tax PLUS 4.7 cents per thousand cubic feet of natural gas produced at the wellhead. When you work it out, it’s actually about 7.5%, NOT 5% as Wolf misleadingly implies. Coupled with PA’s high corporate income tax rate, the proposal, if passed, would put PA at the top of the list of states taxing the oil and gas industry, essentially killing future Marcellus Shale drilling in the state (not an idle threat). Some of those most opposed to this hare-brained plan are the townships where drilling actually happens–they stand to loose big-time because the impact fee money they get now will be traded away for a few table scraps. The impact fee will be converted into the severance tax–and given away to Philadelphia…
Read More “PA Towns to Gov Wolf: Don’t Kill the Impact Fee with Your New Tax”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA | Taxation

John Quigley’s Old Employer Likes High Wolf’s Marcellus-Killing Tax
February 12, 2015February 12, 2015

MDN has several stories today about the newly proposed 7.5% severance tax on Marcellus Shale drilling proffered by newly-elected Pennsylvania Gov. Tom Wolf. If you want to know whether or not this severance tax will work to undermine, and even stop, Marcellus Shale drilling, all you have to do is look at the comments of anti-drilling groups in the state–like the comments of the radical PennFuture. You may recall that Wolf’s nominee to head the Dept. of Environmental Protection, John Quigley, used to work for PennFuture (what does that tell you about the future of drilling in the state?). According to the new “acting” CEO and head of PennFuture, this severance tax will help to end Marcellus Shale drilling in the state…
Read More “John Quigley’s Old Employer Likes High Wolf’s Marcellus-Killing Tax”
Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Growing Jobs: Marcellus/Utica PR Agency Opens Branch Office in TX
February 12, 2015February 12, 2015

Used to be that companies working in and for the oil and gas industry–located in states like Texas and Oklahoma–would set up branch operations in states like Pennsylvania, Ohio and West Virginia to take advantage of the Marcellus and Utica Shale. These days, however, the trend is sometimes reversed. Bravo Group is a public relations firm based in Harrisburg, PA with a long list of clients in the oil and gas industry. Yesterday Bravo announced they’re opening a branch office in Texas. We love it when northeast shale drilling starts to export jobs to “foreign” places (as OH Gov. John Kasich calls them) like Texas…
Read More “Growing Jobs: Marcellus/Utica PR Agency Opens Branch Office in TX”